Compare the Top 5 Best Mortgage Lenders For First Time Buyers to get information on minimum credit scores required, loan terms, quotes, interest rates, the application process, and much more. We know finding the best online mortgage lenders for first time buyers can be a difficult challenge but don’t worry, Mount Shine has brought America’s top 5 best mortgage lenders for first time buyers.
We have compared these 5 mortgage lenders so you can make the right financial decision and get the best deals and lowest closing costs as swiftly and efficiently as possible.
If you are looking for the best mortgage lenders in NC for first-time buyers in Georgia or Texas with bad credit, don’t worry; these lenders work in all 50 states. They will guide you at every step and provide you with the best deals according to your eligibility. Before diving in, let us know what a mortgage is.
What Is A Mortgage? Explained [2023]
A mortgage or mortgage loan is an agreement between the borrower and lender to purchase, buy, or maintain a home, land, or other real estates. The borrower can refinance the real estate without having all the cash upfront. The borrower has to make regular payments divided into principal and interest to the lender. To secure the loan, the property acts as a collateral asset.
When borrowers apply for a mortgage, they undergo various underwriting processes, eligibility criteria, minimum credit scores, and down payments before closing the deal. Now you know What Is A Mortgage? Let us find out the best mortgage lenders for first-time buyers in the United States.
Top 5 Best Mortgage Lenders For First Time Buyers [2023]
Mount Shine’s expert team has compiled a list of the top 5 best mortgage lenders for first time buyers that excel in various areas, such as offering low down-payment mortgages or specialty loans for first-time borrowers. This way, you can quickly decide which one to choose and make the right financial decision.
The best mortgage lenders for first time buyers are:
- Quicken Loans
- NBKC
- NASB (North American Savings bank)
- Ally Bank
- Bank Of American
1. Quicken Loans Mortgage Lenders
Quicken Loans is one of the trusted and best mortgage lenders for first time buyers, where the minimum down payment required is 3%. They need a minimum credit score of 620 to proceed with the mortgage application process.
It is good for borrowers who prefer online processing and assistance from the loan officer over the phone. Quicken Loans are now subsumed under the Rocket Mortgage brand, so borrowers who start with Quicken will end up with a home loan from Rocket.
Now let us find out the pros and cons of Quicken Loan Mortgage Lenders.
Pros
- It caters to self-service users who want to apply for a home loan online and talk to a human only as necessary.
- It’s fast and within a few minutes will give you an estimate of the loan amount you’ll qualify for.
- It streamlines the online process with document and asset retrieval capabilities, including the ability to edit your pre-approval letter.
Cons
- Getting a customized interest rate requires a credit check, which can affect your credit score.
- It doesn’t offer home equity loans or lines of credit.
- According to the latest data, lender fees are on the high side, and the fees aren’t offset by particularly low mortgage rates.
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2. NBKC Bank Mortgage Lenders
NBKC Bank requires a minimum down payment of 3% and a minimum credit score of 620 to proceed with the mortgage application process.
Borrowers with good credit scores should opt for NBKC mortgage lenders as they offer low mortgage rates online. Previous customers have reported good online experience and telephone support. In NBKC’s mortgages, VA loans or Veterans Affairs loans hold a large share. Construction loans and home equity lines of credit are limited to Kansas City.
Now let us find the pros and cons of the NBKC Mortgage Lenders:
Pros
- It offers low rates compared with other lenders, according to the latest data.
- It extends full online capabilities, from application to loan tracking.
- It displays customized rates, with fee estimates, without requiring contact information.
Cons
- Equity lines and construction loans are available only in the Kansas City metro area.
- It doesn’t offer renovation loans.
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3. NASB or North American Savings Bank Mortgage Lenders
NASB requires a minimum down payment of 3% and a minimum credit score of 620 to proceed with the mortgage application process.
NASB is a national bank and mortgage lender in Missouri that offers a wide range of mortgage offers to borrowers with less-than-perfect credit or nontraditional income sources. A large share comprises active military members and veterans’ loans at NASB mortgage lenders. So, if you are a United States military member, NASB mortgage lenders are the bank for you. They do have a wide range of options for other borrowers too.
Now let us find out the pros and cons of the NASB mortgage lenders:
Pros
- It dedicates much of its business to serving military families with VA loans.
- consider nontraditional income sources, in some cases.
- offers competitive rates and origination fees.
Cons
- It does not offer home improvement mortgages.
- It doesn’t offer home equity loans and lines of credit.
4. Ally Bank Mortgage Lenders
First buyers applying at Ally Bank Mortgage Lender require a minimum down payment of 3% with a minimum credit score of 620 to proceed with the mortgage application process.
They have a wide range of online tools for home buyers which support them while financing mortgages. Ally Bank mortgage lenders serve all 50 states and are ideal for first-time home buyers, mortgage refinancers, and jumbo borrowers. They provide an excellent digital experience with dedicated customer service. You can get help from a loan officer, but the digital platform is so comprehensive that it is rarely necessary. The process of applying for a mortgage at Ally Bank is simple, fast, and reliable, which makes the whole experience very good.
Now let us find out the pros and cons of the Ally Bank mortgage lenders:
Pros
- Excels in online convenience, with the document upload, loan tracking, and e-signatures.
- It offers good rate transparency; rate shoppers can see customized interest rates.
Cons
- There is a limited selection of loan products available, including FHA, VA, and USDA loans.
- It doesn’t offer home equity loans and lines of credit.
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5. Bank Of America Mortgage Lenders
Bank of America requires a minimum down payment of 5% and a minimum credit score of 620 to proceed with the mortgage application process. It is a reputed bank with a wide range of solutions for every borrower and is the best mortgage lender for first time buyers.
If you google “best mortgage lenders for first time buyers near me,” we are pretty sure Bank of America’s name will come up.
Bank of America is a noteworthy bank lender, having 5,000 branch locations in the United States. So if you are looking for the best mortgage lenders in NC for first-time buyers in Georgia or Texas with bad credit or fair credit, there will be no problems with customer support.
The bank offers mortgage and refinances loan products and complete banking services where first-time home buyers can look for low-down-payment options, and existing customers may get a discount on fees. Its online mortgage options include the Bank of America Digital Mortgage Experience, thus giving a phenomenal customer experience where they can apply for online applications, electronic signatures for documents, and online rate locks. Borrowers can also connect with a lending specialist online hassle-free.
Now let us find out the pros and cons of the Bank of America:
Pros
- offers down payment and closing cost assistance programs.
- may give existing customers a discount on mortgage lender origination fees.
- offers a home equity line of credit, or HELOC.
Cons
- It doesn’t offer renovation loans that roll costs into a mortgage.
Conclusion
In the United States, there are many options for finding the best mortgage lenders for first-time buyers, but choosing one is tricky. That’s why Mount Shine has chosen these top 5 lists of mortgage lenders on which you can rely. Get to know their online processes and refinancing options for borrowers with poor or fair credit scores. Some lenders might have the option to provide joint auto loans and mortgages. This gives you an advantage as you don’t have to go anywhere else.
Best Mortgage Lenders for First-Time Home Buyers Recap [2023]
Quicken Loans: Best for online experience
NBKC: Best for online experience
NASB: Best for first-time homebuyers overall
Ally Bank: Best for conventional loans
Bank of America: Best for assistance programs
Current Mortgage and Refinance Rates [2023]
| Product | Interest rate | APR |
|---|---|---|
| 30-year fixed-rate | 2.97% | 3.04% |
| 20-year fixed-rate | 2.76% | 2.86% |
| 15-year fixed-rate | 2.21% | 2.34% |
| 10-year fixed-rate | 2.11% | 2.24% |
| 7/1 ARM | 2.61% | 2.91% |
| 5/1 ARM | 2.52% | 2.81% |
| 3/1 ARM | 2.92% | 3.56% |
| 30-year fixed-rate FHA | 2.25% | 2.90% |
| 30-year fixed-rate VA | 2.44% | 2.63% |
Comparing Best Mortgage Lenders For First-Time Home Buyers [2023]
| Lender | Mount Shine Rating | Min. Credit Score | Min. Down Payment |
|---|---|---|---|
| Quicken Loans | 4.0/5 Best for online experience | 620 | 3% |
| NBKC | 5.0/5 Best for online experience | 620 | 3% |
| NASB | 5.0/5 Best for first-time home buyers overall | 620 | 3% |
| Ally Bank | 4.5/5 Best for conventional loans | 620 | 3% |
| Bank of America | 4.5/5 Best for assistance programs | 620 | 5% |
How To Apply To Mortgage Lenders For First Time Buyers [2023]?
Each bank has its own process for applying for a mortgage, whether it is a new mortgage loan or a refinance. We at Mount Shine have simplified the process by bringing you the best mortgage lenders for first-time buyers. Check out the list, online details, and get free reports of your credit score, eligibility for a mortgage, and quotes by contacting us. Our service is free, fast, and simple, so get started today!
Frequently Asked Questions
What are today’s mortgage rates in April 2023?
There was an increase in both 15-year fixed and 30-year fixed mortgage rates. It’s a substantial growth that is regarded to be the most expensive level in 13 years, rising eighth of a percentage point Monday. There is also inflation in the average rate of 5/1 adjustable-rate mortgages. For a 30-year fixed mortgage, the average interest rate is 5.14%, which is an increase of 29 basis points and for a 15-year fixed mortgage, the average interest rate is 4.28%, which is an increase of 23 basis points.
How do I compare current mortgage rates?
The benchmark 30-Year Fixed mortgage rate is 5.60%, FHA 30-Year Fixed is 5.71%, Jumbo 30-Year Fixed is 4.69%; 15-Year Fixed is 4.94%, and 5/1 ARM is 4.23% for April 2023. The best way to compare the best mortgage lenders for first time buyers is to look around at national and local lenders to find the best possible rates. Avoid applying to multiple places as it can affect your credit score.
